On October 1, 2022, the Company entered into an Asset Purchase Agreement to sell the Link-16 TDL Business in its government systems segment to L3Harris in exchange for approximately $1.96 billion in cash, subject to adjustments. In accordance with ASC 205-20, the Company determined that the Link-16 TDL Business met held-for sale and discontinued operations accounting criteria at the end of the second quarter of fiscal year 2023. Accordingly, the Company classified the results of the Link-16 TDL Business as discontinued operations in its consolidated statements of operations for all periods presented. Additionally, the related assets and liabilities associated with the Link-16 TDL Business were classified as held for sale and discontinued operations in the consolidated balance sheet as of March 31, 2022.

On January 3, 2023, the Company completed the Link-16 TDL Sale, and as a result the fourth quarter of fiscal year 2023 included the impact of the gain of approximately $1.66 billion (net of costs to sell of $40.8 million) within net income (loss) from discontinued operations, net of tax on the consolidated statements of operations and comprehensive income (loss) for fiscal year 2023. The Link-16 TDL Sale substantially reduced both debt and net leverage, and allows closer alignment in investment synergies between the Company's government systems segment and its other business segments.

In connection with the closing of the Link-16 TDL Sale on January 3, 2023, the Company and L3Harris entered into certain ancillary commercial agreements, including certain license agreements for the cross-licensing by each party of certain intellectual property rights relating to the Link-16 TDL Business and the Company’s retained businesses, a supply agreement with respect to the supply of certain Link-16 and related products following the closing, and certain services agreements for the provision of engineering and support services for the transition of the Link-16 TDL Business following the closing, in each case subject to the terms and conditions set forth therein. The impact of these agreements on the Company's consolidated financial statements was not significant.

The following table presents key components of assets and liabilities that were classified as discontinued operations on the consolidated balance sheet as of March 31, 2022:


	As of March 31, 2022

Accounts receivable, net	$	47,097
Inventories		144,026
Prepaid expenses and other current assets		6,468
Property, equipment, and satellites, net		36,921
Operating lease right-of-use assets		12,837
Goodwill		21,403
Other assets		6,350
Total assets of discontinued operations	$	275,102

Accounts payable	$	18,415
Accrued and other liabilities		33,858
Non-current operating lease liabilities		11,486
Other liabilities		4,295
Total liabilities of discontinued operations	$	68,054

The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the Link-16 TDL Business that will be eliminated from continuing operations. The following table presents key components of “Net income (loss) from discontinued operations, net of tax” for the fiscal years ended March 31, 2023, 2022 and 2021:


	Fiscal Years Ended
	March 31, 2023			March 31, 2022			March 31, 2021
	(In thousands)
Revenues	$	247,069		$	370,456		$	335,229
Operating expenses:
Cost of revenues		157,355			228,847			208,595
Other operating expenses		24,062			20,138			22,448
Net income (loss) from discontinued operations before income taxes	$	65,652		$	121,471		$	104,186
Gain on disposal of discontinued operations before income taxes, net of costs to sell		1,661,891			—			—
(Provision for) benefit from income taxes		(425,156	)		(22,280	)		(20,635	)
Net income (loss) from discontinued operations, net of tax	$	1,302,387		$	99,191		$	83,551

The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table presents key cash flow and non-cash information related to discontinued operations for the fiscal years ended March 31, 2023, 2022 and 2021:


	Fiscal Years Ended
	March 31, 2023		March 31, 2022		March 31, 2021
	(In thousands)
Depreciation	$	5,909	$	10,400	$	6,824
Amortization of intangible assets		897		1,706		3,152
Capital expenditures		10,950		10,086		15,403